Kenya and the United Arab Emirates (UAE) have held talks over expanding the Standard Gauge Railway (SGR) to Uganda and South Sudan. President William Ruto made the announcement and said the move is a strategic effort to enhance regional integration and trade in East Africa.
A feasibility study for the railway extension is part of the agreement. Improved railway infrastructure will reduce reliance on trucking, especially for Uganda, which currently depends on road transport to access Kenyan ports.
Uganda has signed an agreement with Yapi Merkezi Holdings AS to finance its segment of the SGR, connecting Kampala to the Kenyan border. Past setbacks include China’s withdrawal of funding for a railway link between Kenya and Uganda.
Trade boost
President Ruto discussed UAE’s commitment to invest in Kenya’s Galana-Kulalu irrigation project and other agricultural initiatives to bolster food security. Kenya is seeking a $1.5 billion loan from Abu Dhabi to address budget financing and bolster its foreign-currency reserves.
This collaboration reflects Gulf states’ increasing investments in Africa, leveraging their financial resources to expand influence while balancing global powers like the US, China, and Russia. The SGR extension would reduce transportation costs, improve efficiency, and open up markets for regional goods.
Improved rail connectivity could significantly boost trade volumes between Kenya, Uganda, and South Sudan, fostering economic integration. The project underlines Africa’s growing partnerships with Gulf states for infrastructure financing, moving beyond traditional partners like China. UAE’s involvement in agricultural projects could help Kenya address persistent food security challenges.